What to Watch for in Apple's Earnings Report

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July 23 (Bloomberg) -- Bloomberg Editor-at-large Cory Johnson digs into what to look for as Apple reports quarterly results after the bell today, from operating margins to hints on new products. He speaks on Bloomberg Television's "In The Loop."

We have to divorce the idea of share price and what is going on in the business.

Over the course of the last year, the stock is down considerably and lost markets mojo.

Over the course of the last five years, it is a spectacular rise.

Remember where we were in 2008. apple is continuing to fire on many cylinders.

Under tim cook, there have been some really important changes with the way the business is run and what they are willing to accept in terms of profit and the way their pricing goods.

You can see that in operating margins.

The margins for apple i think show a significant and important change in what they are trying to do.

The companiesy had a near-death experience 15 years ago and would not set ag -- accept anything less than a 30% operating margin.

They have been trying to lower prices and boosting content inside of iphones.

There has been cameras and beenchiops everything else.

I think that represents a significant change in the philosophy at apple where they are willing to accept a little bit of margin.

What about the new products?

Will that help arrest their slide in operating margins?

I don't expect a lot of that from the conference call today but we may have some clues.

Tim cook has given a few close.

Not least of which is this growing category of not just the ipad and iphone but the growing category of fitness wear bows.

There is a lot of indications.

They've got more than 100 people at apple working on a fitness wear ball and we have seen patent drawings that suggest something like a pedometer or i phone controller.

There may be even a heart rate monitor to be worn on the wrist.

These drawings are really cool.

They indicate a new kind of device coming from apple, the likes of which, there are clues on the market.

There is the upband, the fitbit, but this looks like something more robust.

That is very interesting.

What is going to be most important for apple?

Will be the iphone, the ipad or the mac?

It is all about the iphone.

The ipad growth has been spectacular than the market share has grown substantially but the five phone numbers -- they have sold 85 million iphones in half a year.

The market share has been pretty solid.

Android has had a great run but the iphone is taking most of the profits from the business.

Would you rather sell more to make glass or sell less to make more?

They are making a lot of money on iphones.

They are shipping record numbers of iphones.

If we look for kind of numbers they have to indicate the last phase of the iphone 5. they will probably have a new phone released late this year.

Thank you.

He will have much more on the

This text has been automatically generated. It may not be 100% accurate.

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